DELTA AIR LINES INC (DAL)
US2473617023 - Common Stock
Taking everything into account, DAL scores 5 out of 10 in our fundamental rating. DAL was compared to 24 industry peers in the Passenger Airlines industry. DAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. DAL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DAL was profitable.
In the past year DAL had a positive cash flow from operations.
DAL had positive earnings in 4 of the past 5 years.
Of the past 5 years DAL 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.97%, DAL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
DAL has a Return On Equity of 36.23%. This is amongst the best in the industry. DAL outperforms 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.06%, DAL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 36.23% | ||
| ROIC | 10.06% |
ROA(3y)2.82%
ROA(5y)-0.27%
ROE(3y)22.91%
ROE(5y)-141.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 7.46%, DAL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of DAL has declined.
The Operating Margin of DAL (10.29%) is better than 83.33% of its industry peers.
DAL's Operating Margin has been stable in the last couple of years.
The Gross Margin of DAL (49.95%) is comparable to the rest of the industry.
DAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.29% | ||
| PM (TTM) | 7.46% | ||
| GM | 49.95% |
OM growth 3YN/A
OM growth 5Y-1.27%
PM growth 3YN/A
PM growth 5Y-2.16%
GM growth 3Y23.18%
GM growth 5Y-0.72%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DAL is creating some value.
Compared to 1 year ago, DAL has more shares outstanding
DAL has less shares outstanding than it did 5 years ago.
DAL has a better debt/assets ratio than last year.
2.2 Solvency
DAL has an Altman-Z score of 1.32. This is a bad value and indicates that DAL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DAL (1.32) is better than 66.67% of its industry peers.
The Debt to FCF ratio of DAL is 16.24, which is on the high side as it means it would take DAL, 16.24 years of fcf income to pay off all of its debts.
DAL has a Debt to FCF ratio of 16.24. This is in the better half of the industry: DAL outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that DAL has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.21, DAL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 16.24 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.27
WACC7.91%
2.3 Liquidity
DAL has a Current Ratio of 0.40. This is a bad value and indicates that DAL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.40, DAL is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
A Quick Ratio of 0.35 indicates that DAL may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, DAL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
DAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.20%.
The Earnings Per Share has been growing slightly by 2.04% on average over the past years.
DAL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.32%.
DAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.49% yearly.
EPS 1Y (TTM)-13.2%
EPS 3YN/A
EPS 5Y2.04%
EPS Q2Q%-26.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y50.3%
Revenue growth 5Y5.49%
Sales Q2Q%0.28%
3.2 Future
The Earnings Per Share is expected to grow by 13.57% on average over the next years. This is quite good.
Based on estimates for the next years, DAL will show a small growth in Revenue. The Revenue will grow by 2.72% on average per year.
EPS Next Y-1.47%
EPS Next 2Y6.63%
EPS Next 3Y7.82%
EPS Next 5Y13.57%
Revenue Next Year3.92%
Revenue Next 2Y4.99%
Revenue Next 3Y5.1%
Revenue Next 5Y2.72%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.33, the valuation of DAL can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of DAL indicates a somewhat cheap valuation: DAL is cheaper than 79.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, DAL is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.93, the valuation of DAL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DAL is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. DAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than DAL, based on the Enterprise Value to EBITDA ratio.
DAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DAL is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.92 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
DAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.55
EPS Next 2Y6.63%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
DAL has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 7.70, DAL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.93, DAL pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of DAL decreases each year by -27.81%.
DAL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DAL decreased recently.
Dividend Growth(5Y)-27.81%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DAL pays out 5.71% of its income as dividend. This is a sustainable payout ratio.
DP5.71%
EPS Next 2Y6.63%
EPS Next 3Y7.82%
DELTA AIR LINES INC
NYSE:DAL (11/21/2024, 8:21:55 PM)
After market: 63.33 -0.01 (-0.02%)63.34
-0.3 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 36.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.29% | ||
| PM (TTM) | 7.46% | ||
| GM | 49.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-13.2%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-1.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.32%
Revenue growth 3Y50.3%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y